Arctic mining company, which conducts exploration and production of natural diamonds in the North of Yakutia under the brand “ALMAR – Arctic Diamonds”, announces changes in production plans to bring the company’s development strategy in line with the new economic conditions caused by the coronavirus pandemic.
ALMAR develops placer diamond deposits located in the Leno-Anabar diamond-bearing subprovince in the Yakut Arctic, in Olenek and Bulun uluses. The company holds licenses for exploration and evaluation of reserves of 2 placer deposits, as well as lamproite diamond deposits. Start of mining and production are planned for 2024, with sales in the fourth quarter of 2024. ALMAR’s production volume will be up to 0.6% of the total annual diamond production in the world. According to this indicator, the company will take a place in the second tier of diamond producers, represented mainly by companies from South Africa, and due to its Russian origin, it will stand out favorably with greater stability and reliability, as well as a reputation as a supplier of “non-conflict” diamonds.
Despite the fact that the COVID pandemic has significantly affected the diamond industry in terms of reduced sales at the moment, prices for rough diamonds in our range have decreased slightly, these factors are temporary and we see a large window of opportunity for our company in the medium and long term. In particular, the company will be able to ensure even greater business efficiency by reducing the ruble exchange rate.
In the context of the economic crisis caused by the coronavirus epidemic, the company abandoned an aggressive production plan for rapid development of fields by developing two sites at once with parallel geological exploration and organizational work for the preparation of industrial production.
From April 2020, ALMAR is moving to a more cautious plan for the phased development of license areas and the organization of production after the completion of major exploration work. At the same time, the increase in the time required for the start of production and sales of raw diamonds is offset by an increase in the volume of contract work, which significantly reduces the amount of capital investment in exploration. Thus, the investment risks of the project are reduced, due to which the ALMAR investment project gets additional stability.